Paying to much tax (BR tax code)

fgh001

hopefully someone can help
recently started a second job (3weeks ago), with my 2 jobs wages combined i shouldnt be paying tax because im under the yearly threshold. Despite this i've had my first payslip from my second job and im being taxed under a 'BR' tax code. I have rang HMRC to try and explain and they said they cant do anything until they have an employers PAYE reference no. I contacted my employer and they have said the details have been sent to hmrc and the system will update my details. Is this right? If so how long does it normally take? and when will i get a rebate on the money i'am owed?
many thanks.

marisa

Give your current employer your last p45, if you don't have that ask for a p46, fill it in and give them that instead.
They have to send it off to HMRC
Then you just play the waiting game.

How long it takes depends on how fast and competent your companies payroll dept are and how fast the local tax office it ends up at are.
At my current role I got a tax rebate two pays (weekly) later, for another job it took months and months and went past the next tax year, so when my code finally changed I didn't get any rebate.

If this happens then you have to go into a local HMRC office and argue with them for form after form, and wait months , then you eventually, when given up all hope, get a cheque in the post.
Keep all your payslips incase this happens you need them for evidence.

Hope you don't have to go through that, it is best to keep pestering your employer and if nothings changed in the next 2 pays, even if you are payed monthly, wait that long, then go down and kick up a fuss at the tax office.

Good luck

fgh001

many thanks for your reply.
I filled in a P46 the day i started (didnt have a p45). My employer has told me they have sent it off to HMRC, so now there is nothing i can do than to just wait for my code to change and for my rebate to come through./?

Mikeyorks

BR is correct for a 2nd job. And 647L (or similar) for your 'main' job.

But if the combination pay is under the personal allowance threshold then HMRC don't know that unless you tell them? And the P46 does not tell them.

So you will have to 'phone (or write) and ask they split the allowance between the two jobs such that there is sufficient personal allowance against each that you're not taxed. Any refund from the BR will happen at that point ....... it won't happen otherwise, as they will generally give BR against one or the other job

http://www.hmrc.gov.uk/incometax/starting-work.htm#3 (If you've got more than one job)

http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm#3 (Sharing your Personal Allowance between jobs)

fgh001

Mikeyorks wrote: »

BR is correct for a 2nd job. And 647L (or similar) for your 'main' job.

But if the combination pay is under the personal allowance threshold then HMRC don't know that unless you tell them? And the P46 does not tell them.

So you will have to 'phone (or write) and ask they split the allowance between the two jobs such that there is sufficient personal allowance against each that you're not taxed. Any refund from the BR will happen at that point ....... it won't happen otherwise, as they will generally give BR against one or the other job

thanks for your reply.
My second job is now my main job. My first job is only a couple of hours a week where i dont pay any tax on.(its a leaaflet delivery job)

With my 2 jobs combined i will be under the 'personal allowance threshold'

So the only way to stop paying tax on my job is to ring them and ask to split it across my 2 jobs?

Also since starting my second job i have now recieved a P45 from my JSA. Is it worth giving my new employer the P45 or is that irrelevant now?
thanks.

Mikeyorks

fgh001 wrote: »

So the only way to stop paying tax on my job is to ring them and ask to split it across my 2 jobs?

Yes. If you allow it to default you will have BR on one of them. So (use the 2nd link I gave) ring them and apportion your allowance based on the income from each job - as only you currently know that.

Is it worth giving my new employer the P45 or is that irrelevant now?

HMRC will already have a copy. So I would ignore it as you've completed a P46.

marisa

I'd put the BR code on the job you don't do very often. Then if it doesn't go over the personal limit at the end of the year you will get that rebated, but means you ain't getting horrendously taxed on your main income anyway.

jem16

marisa wrote: »

I'd put the BR code on the job you don't do very often. Then if it doesn't go over the personal limit at the end of the year you will get that rebated, but means you ain't getting horrendously taxed on your main income anyway.

If the tax codes are split according to the intended income from each job then you are not paying out extra tax only to have to wait up to 15 months or more to get it back.

With a split tax code assigned to each job you will pay the appropriate tax for each.